By Mr. Arvind Jain, Pride
Group
In
India's larger cities, there is a huge demand for homes of all sizes. However,
it makes perfect sense that the demand is highest for smaller-sized homes with
sizes ranging from 550 to 800 square feet.
Compact Homes..
Obviously,
compact homes such as studio apartments and 1 BHK flats tend to be affordable
to the highest number of buyers in any city.
Many
home buyers at the beginning of their careers look for ‘starter homes’ in
cities like Mumbai and Pune - homes which fall within their current budgets and
can be sold at a future time as their family as well as their incomes grow.
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| Mr. Arvind Jain, Pride Group |
As
a result, the demand for smaller configuration homes such as 1 BHK, 1.5 BHK and
even studio apartments is constant and dependable in the metros. Most reputed
developers provide 1 BHK flats in their projects. In Pune, the newer townships
in areas like Charoli offer excellent options.
Smaller homes.
Because
of the constant demand for them, property investors are also focused on smaller
homes. Apart from the fact that smaller homes are always the most affordable and
the easiest to sell once they have appreciated enough, the rental demand for
smaller homes is also steady in cities like Mumbai and Pune.
Many
home seekers cannot afford to purchase homes in the costlier locations of these
cities, and therefore prefer to live in rented ones. This makes compact flats
an ideal investment option for property investors, both from a capital
appreciation as well as rental income point of view.
The
most attractive locations for investment into smaller flats are naturally the
most central ones, as these invariably offer ready access to the city's
important workplace hubs.
Rental income
Commuting
time to and from work is and will always be the primary consideration for any
home buyer in a large city.
These locations are also the most expensive ones,
which means that capital appreciation as well as rental income potential is
highest in these areas.
However,
thriving workplace hubs have also been cropping up all over the peripheral
areas of Mumbai and Pune.
Examples
in Mumbai include Navi Mumbai, Thane and Panvel, while in Pune we have Baner,
Wakad and Kharadi as notable examples. These locations are the focal points of
new residential catchments, and while properties in these areas tend to be
relatively more affordable, they tend to appreciate fast because they are
driven by employment.
Even
in these areas, there is invariably a huge demand from smaller homes on both
the purchase and rental markets. It is important to note that smaller flats
available for rent in both central and workplace-driven peripheral areas tend
to see a lot of demand from large banks and other corporates, since such units
are ideal for use as company guesthouses.
Flats
given out on long-term corporate leases are an ideal source of higher and
steadier rental income.
About the author..
By Mr. Arvind Jain, Managing Director - Pride Group
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